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WebMD Reports Positive Preliminary Earnings

Friday morning, WebMD (NASDAQ: WBMD) reported preliminary earnings that solidly beat analyst expectations.

The company reported Q2 EPS of $0.05 versus estimates of $0.00 and company guidance of a net loss. Preliminary revenue will be between $124 and $125 million versus consensus of $117.02 million–a year over year increase of 10 percent to 11 percent and well above previous company guidance of $115 million. Adjusted EBITDA will be about $29 million or approximately 23 percent of revenue–a year over year increase of 104 percent.

The company is increasing its 2013 financial guidance. It now believes revenue to be $485 million to $505 million for a year over year increase of 3% to 7%. Net income will be $3 million to $11 million. Prior guidance called for a loss of $13 million to $1.5 million.

“Our better than anticipated second quarter preliminary results and our increased financial guidance for 2013 is primarily due to increased demand for our public portals advertising and sponsorship services, particularly from biopharmaceutical customers,” said David J. Schlanger, Interim CEO, WebMD. “Additionally, while not impacting our increased 2013 guidance, we are experiencing significant new commitments for our private portal offerings, including the previously announced contract with Blue Cross and Blue Shield Association Federal Employee Program, which are expected to generate revenue beginning in 2014.”

[stock-tools exchange="NASDAQ" symbol="WBMD" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the above company.

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